How much Americans are earning and spending, by age group

[Oddball]

You budget voyeurs might find this Motley Fool article interesting:

Here's how much Americans are earning and spending, by age group
(http://www.fool.com/retirement/general/2015/12/28/heres-how-much-the-average-american-earned-and-spe.aspx)

[CathyA]

I noticed that they put the "greater than 25" symbol instead of "lesser than 25" on the graph.
Anyhow.........I've noticed that the younger generation seems to be comfortable living beyond their means, and just not worrying about it!
I thought my kids were responsible.........and they are in many other areas.........but they seem to ignore the fact of how much they are spending just in interest, on loans and credit cards. Drives me crazy. But yet.....they can spend money on entertainment, eating out, etc. Man, I was so much more financially responsible when I was their age.

[Ultralight]

I noticed that they put the "greater than 25" symbol instead of "lesser than 25" on the graph.
Anyhow.........I've noticed that the younger generation seems to be comfortable living beyond their means, and just not worrying about it!
I thought my kids were responsible.........and they are in many other areas.........but they seem to ignore the fact of how much they are spending just in interest, on loans and credit cards. Drives me crazy. But yet.....they can spend money on entertainment, eating out, etc. Man, I was so much more financially responsible when I was their age.

I am 36 and I will admit I spend too much on going out to eat. Grabbing a couple slices of pizza or getting Indian take-out is a major temptation.

[Williamsmith]

There is a stick of dynamite waiting to blow this whole thing up and it was greatly underestimated here. It's that issue no one wants to deal with directly...healthcare costs In the future. Obama did nothing to address this. Out of pocket expenses are still skyrocketing and industry still has way too much control with govnment inefficiency fouling up things.

I think the youth just feel so powerless to stop,it that they have accepted it and are just enjoying themselves at the expense of their future. Why suffer now if you are sure to suffer later no matter what you do now.

And it will be baby boomers who become the healthcare burden that breaks the camels back. Alzheimer's disease will,present huge challenges. The over 75 crowd will be a significant challenge.

[Ultralight]

I think the youth just feel so powerless to stop,it that they have accepted it and are just enjoying themselves at the expense of their future. Why suffer now if you are sure to suffer later no matter what you do now.

This right here is an incredible insight.

[jp1]

I think the youth just feel so powerless to stop,it that they have accepted it and are just enjoying themselves at the expense of their future. Why suffer now if you are sure to suffer later no matter what you do now.
.

You're probably right for at least some young people today, but I think there's also a lot of normalcy bias involved. It's hard for people to accept/understand that history doesn't always move in a linear fashion. That's the basic concept behind the book the fourth turning. By the time a fourth turning happens most of the people who lived through the last fourth turning, and smart enough to not do things to cause a repeat, are dead.

[pinkytoe]

youth just feel so powerless to stop,it that they have accepted it and are just enjoying themselves at the expense of their future.
It is interesting watching DD and her new hubby earn and spend (33 and 35). They don't seem to have many reservations about spending even though they have quite a bit of debt. Having fun is an absolute requirement for them so they eat out a lot, go to events and festivals, have frequent parties etc. They are rich in friends and experiences so I guess they'll figure out the other end when they get there. I once had a young co-worker explain to me that she and her friends had accepted the fact that their college debt is just a fact of their lives - for a very long time. Why worry she said?

[rodeosweetheart]

I've also had friends who are in their 40's and 50's taking on college and grad school debt with the theory that they will outlive it, and that social security is capped at how much they can garnish for the debt.

[jp1]

I've also had friends who are in their 40's and 50's taking on college and grad school debt with the theory that they will outlive it, and that social security is capped at how much they can garnish for the debt.

That would seem like a flawed plan since social security can be garnished 15%, as long as the remaining benefit is at least $750 per month.

[rodeosweetheart]

That would seem like a flawed plan since social security can be garnished 15%, as long as the remaining benefit is at least $750 per month.
It seems flawed to me, too, but that is what my boss and sister in law have both done.

[SteveinMN]

I think the youth just feel so powerless to stop,it that they have accepted it and are just enjoying themselves at the expense of their future. Why suffer now if you are sure to suffer later no matter what you do now.
I've mentioned before on this board that DW works with many poor families as part of her job -- and spent several years herself as a single mom on a social-worker's paycheck. She's said many times that this acceptance/resignation often is a core belief of those in long-term poverty: if you have money now, spend it on, say, a mani-pedi or a new TV instead of a car tune-up. You know something will happen that will require the money and then what will you have to show for it? If the car breaks down, well, that was going to happen sooner or later anyway so why waste money forestalling it? It'll get fixed somehow. Or you'll sell the TV to cover the bill. It'll work out. Why deny yourself forever?

That's completely beyond the way I was raised. But then I wasn't raised in grinding multigenerational poverty.

[eleighj]

I have seen that most people do not want to make the effort to deal with these issues! From my observations and dealings they believe, "that as long as you ignore it, it can not happen to me". Obviously the world don't work that way.:0!

Ed